Common Mistakes when Getting Car Insurance
To avoid any hassle, don’t commit any or all of these common mistakes when buying a car insurance policy.
No matter your driving skills nor the model of your car, there is no excuse to not buying a car insurance policy. Annual statistics in the U.S. indicate the importance of having active auto insurance. On top of that, keeping a policy is mandated by our law.
Based on estimates, there are over 270 million registered cars on the roads in the U.S. Millions of those are involved in vehicular accidents each year. Of those unlikely incidents, about 30,000 results in fatalities, almost 2 million in injuries, and about 5 million in cases of property damage.
Car insurance should always be in place to cover damage to the car due to a vehicular accident, to cover damage to other cars and properties, and even to cover injury to other people.
“Buying car insurance, however, is no walk in the park.”
Buying car insurance, however, is no easy feat. If you are budget conscious, be prepared to have a harder time finding and buying that perfect policy for you. Be aware of and avoid committing these common mistakes when purchasing an auto insurance.
Purchasing a vehicle that is costly to insure
All cars are not created equal, neither are the insurance costs they require. High-performance cars require higher premiums, as do those that are more expensive to repair and those that are made of advanced materials like carbon fiber, ultra-high strength steel, and aluminum. When buying a car, consider how much having it insured will cost you.
Not checking the insurer’s reputation
You wouldn’t want to do business with an insurance company is notorious for having poor customer service. More importantly, you wouldn’t want to get insurance from a company that can’t fully fulfill its financial obligations, specifically the obligation it has to cover your claims. Do some research first—read online reviews, ask your peers, or seek recommendations from the expert—before signing up for auto insurance.
“Do some research first before signing up for an auto insurance.”
Opting for a coverage that is too little
Do not settle for the minimum insurance coverage implemented in your state. Always aim for greater coverage. Be sure the policy you are buying carries personal injury protection, medical claims coverage, and underinsured/uninsured motorist protection. If you don’t have a car loan, still include comprehensive collision coverage as protection in case your vehicle gets wrecked or stolen.
White lies on your application
You’ll never get away with those little lies you make when signing up for car insurance or when filing a claim. Insurers can access DMV records, allowing them to determine all important information about your car and records. When your insurance provider catches your intentional lies, it may cancel your coverage, which is a huge risk to take. The cancellation record may also make it more difficult for you to apply for and get new car insurance in the future.
“You’ll never get away with those little lies when signing up for car insurance or filing a claim.”
Not updating the insurer about a major life event
The auto insurance industry is among the very few fields where discrimination is legal. Insurers are allowed to impose different premium rates based on gender, age, address, and civil status. Premiums change when you get married, file for divorce, move to a new home, or add a teen driver to your household policy. There are changes in your status that will be to your advantage—lowering your premiums—while some may incur additional charges. Again, be honest. You’re not fooling anyone and you shouldn’t try to.